When I first entered the bank card space I was asked a million times
‘What’s your rate?’. Today the same questions are asked by a merchant
base completely in the dark as to how fees are assessed.
Which brings us back to interchange - the core fees which constitute
the majority of the fee assessed to the merchant.
ISSUING AND ACQUIRING BANKS
Everyone uses plastic to make purchases. However it may
surprise you to know current credit card processing can trace its roots
back thousands of years. Did cave men use credit cards? From the fields
of the gold rush to the company store, our journey ends in the banking
structure of today.
WHAT IS INTERCHANGE?
There are only two types of people in the processing word.
Those who use credit cards and those who accept them. Many times one
person can be both! We will take a look at the needs, concerns and
issues of each, and see how one influences the other.
TIERED AND COST PLUS PRICING MODELS
Our final topic of conversation is in introduction to how
payment cards are processed. We will track the dollars from consumer to
merchant, and demystify the process. Thus armed, you will better
understand the value which you will bring to the merchant, from both a
financial and service perspective.
iProcess - Knowing the Payment Industry
Section 5 - Working with Interchange
You are what
you repeatedly do. Excellence is not an event - it is a habit
We have discussed quite a few things…yet now it’s time to
mention the value of processing statements when identifying financial
advantages to potential customers. We will discuss our sales process in
later chapters; however, the value of processing data inn the form of
statements from a merchant warrants a quick mention.
In servicing your prospective customer, keep in mind the
following guidelines. They may assist you in better understanding how
you should proceed with a merchant:
- Processing Statements are an invaluable resource - by
collecting a few months processing statements, we can provide an
‘apples to apples’ pricing comparison for a merchant. You can then
demonstrate specifically where you can best benefit the merchant when
compared t their current provider.
- Cost-Plus to Cost Plus, tiered to tiered - typically it is
best to keep . . .